The average value of farmland in Alberta increased by 1.0 per cent in the first half of 2009, Farm Credit Canada (FCC) says in its latest semi-annual Farmland Values Report.
This is the third consecutive semi-annual increase and follows increases of 2.2 and 6.7 per cent in the two previous reporting periods. The complete report is available at www.FarmlandValues.ca.
Overall, the average value of Canadian farmland increased 2.9 per cent during the first six months of 2009. The 12 months from June 2008 to June 2009 saw large fluctuations in prices for agriculture commodities, oil and gas. This created uncertainty in the marketplace and in the agriculture sector. However, in the last three semi-annual reporting periods, farmland values in Canada have increased by 5.8, 5.6 and 2.9 per cent.
“Several factors can impact the crops every year in Canada, the weather being the most important one followed by the commodity prices and the variable demand for food and biofuels. The quality of Canadian farmland remains amongst the best in the world but Canadian producers work with a short growing crop season and variable weather conditions. These two factors have a huge impact on the production and the value of the land,” says Rémi Lemoine, FCC senior vice-president, Portfolio and Credit Risk.
The bi-annual FCC Farmland Values Report has been published since 1984. To see the previous reports, visit www.fcc-fac.ca.